Relates to the calculation of the maximum fee for health clubs; allows the maximum annual fee amount to be adjusted for inflation based upon the US Consumer Price Index.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8638B
SPONSOR: Kim TITLE OF BILL:
An act to amend the general business law, in relation to the calculation
of the maximum fee for health clubs
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to adjust the current annual membership cost
ceiling enforced by the office of the New York State Attorney General
and in statute pursuant to section 623 of the general business law, to
account for changes in costs due to inflation,
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends section 623 of the general business law to include
adjustments for inflation, and in a new subdivision 6 stipulates that
the annual price cap will be "adjusted for inflation based upon the US
Consumer Price 8 Index".
Section 2 sets the effective date.
JUSTIFICATION:
The New York Health Club Services Act was enacted in 1978 in reaction to
deceptive practices by a few health club operators in the then-nascent
health club industry, To protect consumers, the New York State legisla-
ture passed a series of laws to regulate contracts between consumers and
health clubs, Since the Act's adoption established a $3,600 annual cap
in 1991, but this has not been adjusted for inflation in over 30 years.
With the passage of over three decades, the Health Club Services act is
in need of updating so that it will recognize the overall rise in prices
in the state economy and the changing, competitive landscape of health
club services. It has failed to keep pace with the increasing costs of
providing such services, which enables competition and consumer choice
at all levels. This bill will allow for the health club industry to
remain economically viable in the face of rising costs,
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8638--B
2025-2026 Regular Sessions
IN ASSEMBLY
May 22, 2025
___________
Introduced by M. of A. KIM, SHIMSKY -- read once and referred to the
Committee on Consumer Affairs and Protection -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee -- recommitted to the Committee on Consumer Affairs and
Protection in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the general business law, in relation to the calculation
of the maximum fee for health clubs
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 623 of the general business law,
2 as amended by chapter 660 of the laws of 1990, is amended to read as
3 follows:
4 1. No contract for services shall require payment by the person
5 receiving service or the use of the facilities of a total amount in
6 excess of three thousand six hundred dollars per annum, as cumulatively
7 and annually adjusted for inflation based upon the US Consumer Price
8 Index, provided, however, that this subdivision shall not apply to
9 contracts relating solely to the use of tennis, platform tennis [or] and
10 racquet ball facilities.
11 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10865-04-6
